Chevron Corporation (CVX), YPF SA (ADR) (YPF): This Dead Cow Has Caught Big Oil’s Attention

Another company to watch is Apache Corporation (NYSE:APA). The company has been operating in the country since 2001 and has interests in 3.7 million net acres, including 1.3 million net acres in the Vaca Muetra shale. Last quarter the company participated in the drilling of four total wells in the Vaca Muerta and it’s currently working on a strategy to develop its acreage in the play. That means the company has a long way to go before its operations in the country really move the needle.

Source: Apache

What’s very clear is that despite the potential, investors have a long way to go until Vaca Muerta will begin to drive returns for U.S. based producers. One reason for this is that Argentina will need a lot of capital to really bring the Vaca Muerta to life. The general consensus is the country will need about $7 billion per year to fully develop its shale oil and gas resources. So, while an important first step, Chevron Corporation (NYSE:CVX)’s $1.24 initial investment in the play is really just the tip of the iceberg.

The article This Dead Cow Has Caught Big Oil’s Attention originally appeared on Fool.com is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool owns shares of Apache.

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